An employee retired from service in Dec 2011.
As an PF/ESI registred company we were dedcuting and paying PF /ESI on his account also till he retired.
Now we wsih to re-employ him at a salary of Rs. 16,000/- pm
Kindly advise whether we need to deduct and pay PF and ESI for him once we employ him once again.
Please provide relevant section of the act/rules if possible and importance of dates and amount where the implications could change.
Thanks
Ashish
ESI:
Though I am not sure but as he has been re-employed as a new employee with new employment contract, you are not required to contribute towards ESI.
Provident Fund:
Again as he has been re-employed as a new employee with new employment contract, you are not mandatory required to contribute towards PF.
But if both employer and employees are agree they can contribute towards PF. But employee can not become member of pension scheme of Provident Fund department. Contribution from both employer and employee would be just like any other investment.
| Originally posted by : Ashish | ||
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Dear Santosh, Thank you for your reply. Will the answer change if the salary is reduced to say 10,000/- |
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He has retired as per company policy and company wishes to re-appoint him with a new contract. Yes, salary can be reduced to 10000 for PF purpose.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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